China stimulus effect on metals was short lived

Copper is preparing to close with losses for the fifth week in a row due to global growth concerns after the short-term rise after the possibility of large-scale stimulus from China.

While base metals continued to decline, copper, which rose 4%, continued to lose value on Tuesday, with news that China's Ministry of Finance will allow local governments to borrow 1.5 trillion yuan ($220 billion) in private bonds.

The rally was short lived as the incentive application would take time and create a deficit in the 2023 budget.

Base metals will continue to depreciate in the second half of the year due to the economic slowdown and the pressure exerted on prices by the tightening monetary policies of major economies, according to the state-backed Research Institute Beijing Antaike Information Development.

The institution emphasized that they expect copper, aluminum and nickel to decrease in the second half of the year, with the expectation that copper demand will decrease in China.